The liquid crystal (LC) light valve, which is a spatial light modulator that uses LC material, is a very important device in the area of display development, image processing, optical computing, holograms, etc. In particular, there have been dramatic developments in the past few years in the application of the LC light valve to projectors and other display technologies. Various LC operating modes have been developed, including thin film transistors, MOS-FETs and other active matrix drive techniques to meet the requirements for higher resolution, and substantial improvements have been achieved in the performance of optical systems, resulting in brighter display images. Given this background, the number of applications for the LC light valve has greatly increased. The resolution has increased from QVGA (320 x 240) to QXGA (2048 x 1536) or even super- high resolution of eight million pixels. In the area of optical output, projectors of 600 to 13,000 lm are now available, and they are used for presentations, home theatres, electronic cinema and other diverse applications. Projectors using the LC light valve can display high- resolution images on large screens. They are now expected to be developed further as part of hyper-reality visual systems. This paper provides an overview of the needs for large-screen displays, human factors related to visual effects, the way in which LC light valves are applied to projectors, improvements in moving picture quality, and the results of the latest studies that have been made to increase the quality of images and moving images or pictures.